With an opening revenue surplus balance of ₹ 2,500 crore, Telangana indeed started its innings in 2014 on a sound financial footing.
Circa 2017, State is literally struggling to cope with payment of bills for scores of projects sanctioned in key sectors. The ‘rich’ State has clearly bitten more than it can chew. But, Telangana continues to be revenue surplus i.e. its revenue receipts are more than its revenue expenditure.
At the end of 2014-15 financial year, it was left with a revenue surplus of ₹ 330 crore, in 2015-16 it showed ₹ 230 crore and in 2016-17 the provisional revenue surplus is estimated at ₹ 4,500 crore. This facilitates the State to carry on with its daily expenditure without having to borrow.
But, for the mind boggling capital expenditure lined up, the Government revenue resources are not enough to release bills for the work grounded. If only the political leadership had exercised some prudence in giving sanctions, it would have had concrete results to show on ground, informed sources say, pleading anonymity.
Clearly, Telangana went overboard on its capital expenditure in the last three years ostensibly for translating ‘Bangaru Telangana’ dream into a reality. Projects were sanctioned left, right and centre in various sectors with irrigation getting the lion’s share.
Welfare schemes
The social welfare schemes cost up to ₹ 40,000 crore but without ‘optimum satisfaction’ for beneficiaries.
The State went on a borrowing spree to fulfil promises to bring one crore acres under cultivation, drinking water supply to every household under Mission Bhagiratha, revival of tanks under Mission Kakatiya, two bed room houses for the poor, massive expansion of road infrastructure, etc.
Capital expenditure figures in the last three years give an indication. In 2014-15, it was ₹ 9,856 crore. It jumped to ₹19,182 crore in 2015-16 and to a high of ₹ 30,060 crore in 2016-17. It is estimated to touch ₹ 36,475 crore in current fiscal.
Three times increase
The three times increase in last three years is said to be unprecedented and much more than the capital expenditure of any State of its size as even bigger States went for incremental increases, they claim.
At present works worth ₹ 1.5 lakh crore were grounded in irrigation (Budget allocation - ₹ 25,000), R&B (₹ 3,000 crore) and Panchayat Raj (₹ 2,000 crore). That is against the budget allocation of ₹ 30,000 crore in three sectors.
“It would have made sense to take up works worth three times the budget or ₹ 90,000 crore with a target to complete them in three years, but here it is five times the budget allocation. Hence, bills are pending and works got affected,” sources aver.
For Mission Bhagiratha, entire expenditure of ₹ 30,000 crore was raised as loan and it is alleged that here is where huge ‘cuts’ happen. Story is same everywhere - in irrigation sector, projects worth ₹ 1.8 lakh crore were sanctioned, ₹ 1.3 lakh crore projects tendered and awarded against the budget allocation of ₹ 25,000 crore and so far Rs.50,000 crores had been spent.
Comparatively, for R&B, ₹ 12,000 crore projects were sanctioned in first year, as also Panchayat Raj - ₹ 10,000 crore and this led to improved roads with works executed sensibly, of course other than the GHMC.
